【正文】 e McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 34 Other Financial Institutions ? Security dealers “take a position of risk” in securities. They trade in securities with the expectation of earning a profitable spread. ? Investment bankers assist businesses and governments in issuing debt and stock. ? Venture capital firms provide longterm capital financing for new businesses and rapidly emerging panies. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 35 Other Financial Institutions ? Mortgage banks work with other businesses on real estate development projects and sell the resulting loan instruments to other investors. ? Real estate investment trusts (REITs) fund mercial and residential real estate projects. ? Leasing panies purchase business equipment and other assets and then lease them in return for rental fees. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 36 Trends Affecting All Financial Institutions Today ? There are several major trends affecting virtually all financial institutions today: ? increasing cost pressures ? consolidation ? service diversification and homogenization ? convergence ? technological revolution ? global petition ? regulatory cooperation and harmonization ? deregulation ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 37 Money and Capital Markets in Cyberspace ? Mutual funds are discussed at and ? More information on pension funds can be found at and ? Websites for the insurance industry include and ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 38 Money and Capital Markets in Cyberspace ? Visit some finance panies and investment banks like and ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 39 Chapter Review ? Mutual Funds (Investment Companies) ? The Background of Investment Companies ? Tax Status of the Industry ? OpenEnd and ClosedEnd Investment Companies ? Goals and Earnings of Investment Companies ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 40 Chapter Review ? Pension Funds ? Growth of Pension Funds ? Investment Strategies of Pension Funds ? Pension Fund Assets ? Factors Affecting the Future Growth of Pension Funds ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 41 Chapter Review ? Life Insurance Companies ? The Insurance Principle ? Investments of Life Insurance Companies ? Sources of Life Insurance Company Funds ? Structure and Growth of the Life Insurance Industry ? New Services ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 42 Chapter Review ? PropertyCasualty (P/C) Insurance Companies ? Makeup of the P/C Insurance Industry ? Changing Risk Patterns in Property/Liability Coverage ? Investments by P/C Companies ? Sources of Ine ? Business Cycles, Inflation, and Competition ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 43 Chapter Review ? Finance Companies ? Different Finance Companies for Different Purposes ? Growth of Finance Companies ? Methods of Industry Financing ? Recent Changes in the Character of the Industry ? Other Financial Institutions ? Trends Affecting All Financial Institutions Today ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 44 Money and Capital Markets 18 C h a p t e r Eighth Edition Financial Institutions and Instruments in a Global Marketplace Peter S. Rose Slide by YeeTien (Ted) FuThe Regulation Of The Financial Institutions’ Sector ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 45 ? Learning Objectives ? ? To explore why financial institutions are one of the most regulated industries in the modern world. ? To discover the many types of regulation, and to understand how the financial institutions have been affected. ? To examine the recent global trend toward deregulation. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 46 The Reasons Behind Regulations ? Concern for the safety of the public’s funds. ? To promote public confidence in the system. ? To ensure equal opportunities and fairness in the public’s access to financial services. ? To prevent excessive money creation, and hence excessive inflation. ? To aid “disadvantaged” economic sectors. ? To ensure that important financial services are provided reliably and at a reasonable cost. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 47 Do Regulations Benefit or Harm Financial Institutions? ? Regulations subsidize the growth of financial institutions and protect them from petition. ? Regulations tend to increase public confidence. ? Regulations spawn innovative escapes (regulatory dialectics) through loopholes in the regulations. ? Regulations can benefit financial institutions. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 48 Do Regulations Benefit or Harm Financial Institutions? ? Regulatory dialectics are not the most productive form of innovation. ? The time and energy spent on regulatory pliance activities are costly. ? Regulations can harm financial institutions. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 17 49 The Regulation of Commercial Banks ? Due to their importance in the financial system, mercial banks are typically the most regulated of all financial institutions. ? Responsibility